Motor racing-F1 must tackle costs urgently, says Montezemolo

LONDON, June 12 (Reuters) - Formula One must take urgent

action to address costs in the light of global economic problems

and the euro zone debt crisis, Ferrari president Luca Di

Montezemolo said on Tuesday.

Spain's Banco Santander, the euro zone's largest bank whose

long-term credit rating was downgraded on Monday by Fitch

Ratings, are one of the FIAT-owned team's most prominent

sponsors.

Euro zone finance ministers agreed at the weekend to lend

Spain up to 100 billion euros to shore up teetering banks hit by

bad loans after a real estate boom turned to bust, although

Santander has said it will not need any of it.

"The world economic situation and that of Europe in

particular, is very serious and the world of Formula One cannot

ignore the fact," Montezemolo said on the Ferrari website

(www.ferrari.com).

"We cannot lose any more time: we need to tackle urgently

and with determination the question of costs.

"Ferrari is in agreement with the (governing) FIA's position

that drastic intervention is required. We are absolutely

convinced that, as I have always said, the teams and the

commercial rights holder must work together with the Federation

on this front," added the Italian.

"This is no longer the moment for getting bogged down in

sterile discussions or the meanderings of engineers, usually

only concerned in defending the interests of someone or other:

the question has to be tackled at the highest level, without

further delay."

Formula One teams, commercial rights holder Bernie

Ecclestone and the International Automobile Federation are in

the final stages of concluding a new 'Concorde Agreement'

governing the sport.

The existing agreement expires at the end of the year but

Ecclestone told CNN last month that most of the 12 teams had

agreed they would sign an extension until 2020.

BUDGET CAP

Ferrari, the only team to have been in the championship

since the first season in 1950 and also the most successful, get

a special premium in recognition of their importance to the

sport on top of their share of the revenues.

They are also the biggest team based in the euro zone, with

most of the others having factories in Britain. Sauber are

Swiss-based, Red Bull-owned Toro Rosso in Italy and tail-enders

HRT have their headquarters in Madrid.

The FIA met teams after last month's Monaco Grand Prix with

mounting concern about how expensive regulations for 2014, when

a new V6 1.6 litre turbo engine is due to be introduced, will

prove.

Ferrari, Mercedes and Renault provide 10 of the 12 teams

with engines, with the other two using Cosworth units.

Formula One has had a so-called Resource Restriction

Agreement (RRA) in place in recent years but the once-united

team body FOTA has been weakened by the departures of Ferrari

and Red Bull over disagreements about spending.

Talks on a new RRA, and the possibility of the FIA policing

some sort of a budget cap, have intensified with reports

suggesting the end of June marks a cutoff point at which teams

can agree measures by a majority vote.

After June 30, any change affecting next year must be

unanimous, which is likely to be much harder to achieve.

Sauber CEO Monisha Kaltenborn suggested in April that a

budget cap should be introduced for next year.

"I think that we should have the next step already in place

for next season and take it from there. Next season for me

should already see a major step forward in the financial

feasibility of a team," she told the formula1.com website.

"When the current Concorde Agreement comes to an end at the

end of this season, I think it would be a good time to set some

kind of rules."

(Editing by Alison Wildey)

kardashian christmas card lori berenson lori berenson the incredibles jon bon jovi dead new jersey plane crash kobe bryant wife